Category Archives: Our Economic Mess

Supply and Demand – Another Law No Longer Enforced

Posted on by Standard 2

Supply and demand.

Please close your eyes, stop your busy brain for a second, and say those three words.  Give me a quick one-sentence explanation of what it means to you.

Okay, ready?

Supply and demand.  Did that phrase register with you?  Was it a simple concept, an obvious and common thing like salt and pepper?  Or did it kind of bounce off, a hazy theory, something you have heard of, but never really thought about?

Even if you can’t give a pretty definition, you probably do understand the concept.  While economists can discuss nuances of the law of  supply and demand for years, the basic concept is simple and intuitive:  the less there is of something, the more valuable it is.  A pound of gold is worth more than a pound of rocks, because there are a lot of rocks in the world, and only a little bit of gold.

Supply and demand is why we get up in the morning and go to work.  We have needs and wants, we want our families to live better.  Every single waking moment of our lives we are active on both sides of the law of supply and demand.  We want to improve ourselves so that the demand for what we do is higher (competition), so we can make more money.  Others want to get our money, so they try to provide something we demand (competition).  The price of everything in the world is controlled by supply and demand.

I can think of no concept more critical to the success of every human being than a gut-level understanding of the law of supply and demand.  It is as undeniable and righteous as the law of gravity.  It should be the basis of our education system.  Sadly, it isn’t.  In fact the law of supply and demand is increasingly ignored, denied and dismissed in our schools, in the media, and certainly by our government.

To keep this sermon to a manageable length, here is an illustration:  if you had a choice between two identical loaves of bread – one cost a dollar and the other cost two dollars – which one would you buy with your own money?  Duh.

Now, if you had a choice between two employees doing the same work – one cost $50,000 and the other cost $100,000 – which one would you buy with your own money?  Double Duh!  So why do federal employees receive more than DOUBLE the compensation of the private-sector employees who pay their salaries?

How can that happen?  The law of supply and demand has been broken.  There is no scarcity of federal employees (over a half million of them make more than $100,000 per year).  They are no more valuable than their private-sector counterparts.  What’s going on here?

The answer is:  Corruption.  Pay to play.  Quid pro quo.  We have allowed government employees to unionize.  The unions promise money, logistical support, and votes to elected officials in exchange for more union jobs and higher pay and benefits.  Get me elected, I’ll pay you back, with somebody else’s money. Pay me back, I’ll get you elected.  The taxpayer has no input or control over this.  It is a done deal.  The law of supply and demand has been broken, and until we eliminate government employee unions, this corruption will escalate until our economy and nation is destroyed.

There are many more examples of government breaking the law of supply and demand – crooked contracts, cronyism, manipulating interest rates, all the things that make elected officials stinking rich.  But this one – government employee unions – is the big kahuna, because of the vast number of people involved.  ObamaCare promises another 21 million government union employees.  It’s the perfect crime.

I can’t help but wonder if more Americans understood and recognized and respected and enforced the law of supply and demand, would they hold their government accountable?

Tom Balek – Rockin’ On the Right Side

These days the buck stops nowhere
No one takes the blame
But evil is still evil
In anybody’s name
If dirt were dollars
If dirt were dollars
If dirt were dollars
We’d all be in the black

If Dirt Were Dollars – Don Henley

Yeah, Right, We Hate Women and Kids

Posted on by Standard Reply

Conservatives are big meanies, right?  We hate women, and minorities and children.  We want dirty air and water, and we would throw Granny over the cliff in a heartbeat.  All because we want to take money from poor people and give it to rich people.

Today I took my two-year old twin grandkids out for their first fishing experience.   It was Grandpa heaven – digging the worms, baiting the hooks, enjoying the warm sunshine on the dock with a picnic lunch.  Lydia caught a fat little catfish right away, and minutes later Conrad caught a perch.  They were mesmerized, and Grandpa was a hero.  “Goodbye, Mr. Fish,” they waved, as we threw them back in the water to get bigger for next time.

Yeah, I kind of care about these little guys.  So much that I will do anything to protect them and their futures.   I am compelled to work toward reducing the debt so they won’t be burdened with crushing taxes.  I want to strengthen our private sector economy so they can have meaningful jobs and live in a secure, prosperous nation.   I am driven to improve our educational system so their adult lives will be rich and rewarding.  I would never condone anything in their environment that would harm them in any way.

Liberals, you can accuse me, and my fellow conservatives, of a lot of things.  But let’s drop the crap about how we hate women and children.

Tom Balek – Rockin’ On the Right Side

Here’s a song I wrote for the kids a while back, looking forward to this day!

Let’s go fishin’, it’s a beautiful day
There’s not a single cloud in the sky, now, what do you say?
Nothin’ better than a fish on your line
Just take him off and throw him back, he’ll be bigger next time

Let’s Go Fishin’ – Tom Balek

The “Grown-Up In The Room” – Still Herman Cain

Posted on by Standard 1

A few weeks ago I nominated Paul Ryan to the “Old Bean Counters” club, of which I am the founding member.  We “Old Bean Counters” believe in the sanctity of honest accounting.  We understand that careful budgeting and controls (fail to plan, plan to fail) results in success for businesses and for governments.  And we believe we could save the nation’s economy if we were allowed to move in and clean up the books.

Today another eloquent statement in support of fiscal sanity was written by our level-headed old friend Herman Cain.  I remain a huge Cain fan.  He gets my top grade for leadership, common sense, and patriotism.  Herman is still the “grown-up” in the room, and must be added to the “Bean Counters” club.

The War of Words: No One Wins
By Herman Cain

As someone who has spent a long career in the business world, confronting problems and solving them, I find that there’s something surreal about two weeks of political conventions in a nation that faces very big problems – and desperately needs effective solutions.

In the business world, when people are attacking each other, hurling accusations and leveling blame, the first thing a leader has to do is put a stop to that. In such an environment, it is extremely difficult to devise solutions, and it is almost impossible to implement them effectively.

Today’s political environment is exactly what I just described on a 24/7 basis. It is a never-ending war on words. And this is a war that no one wins.

This is not going to be one of those columns where the writer tries to appear above the fray by blaming both sides equally, and pretends not to be taking sides. Get real. You know perfectly well that I support Mitt Romney and that I oppose Barack Obama. You’ve read my criticisms of Obama’s policies in this space and others. I am not decrying all criticism because a) it is a healthy part of our system of government; and b) I engage in it as much as anyone.

But there’s a difference between honest criticism and simply saying anything you have to say for the sake of your own power. This is the phenomenon that was on display at the Democrats’ convention in Charlotte, and it was astounding.

Consider the fact that the Democrats apparently have decided the word “voucher” can be used in a negative way to hang a political anvil around Republicans. Repeatedly, they attacked Republicans for wanting to replace Medicare with what they call “Vouchercare.” What made this so appalling was not the mere fact that there’s nothing wrong with a voucher, which is simply premium support that seniors can use to purchase their own insurance. No, what made this so appalling is the fact that, even as the Democrats were tossing this word around as if it were a euphemism for a concentration camp roundup, the Obama Administration itself was in the process of moving 2 million seniors into vouchers as a pilot program designed to improve Medicare.

In other words, they don’t even mean what they say. They simply say it because it’s tested well with focus groups or something. Attack vouchers and land blows against Republicans. You know it’s total BS, but it works.

Another example is their constant use of the phrase “middle class,” usually accompanied by a denunciation of “tax cuts for millionaires.” You’d think, to listen to these guys, that the middle class was doing great under them – since they warn darkly of its fate in the event of a Republican victory. In fact, middle class incomes have fallen by more than $4,000 per household since Obama took office. The people who constantly drone on about the middle class have nothing to offer the middle class. But the words sure sound good.

Republicans can be susceptible to the same thing. They spent a lot of time at their convention attacking out-of-control federal spending. And rightly so. But they did that in 1994, and were handed control of Congress by voters who agreed with them. The Republican Congresses of the 1990s did control spending for awhile, which is why we got the balanced budgets that Bill Clinton attributes to his own excellence in arithmetic. But by the time we hit the new millennium, congressional Republicans had discovered that they liked spending too – and pretty soon fiscal discipline was a thing of the past. Yet here they are in 2012, saying the same words. It might win them the election. And if it does – and they remain mere words – no one will have won.

It’s easy to blame this on political consultants who poll-test every theme and concept, and put it before focus groups to see how it will play. It’s easy to blame the shallow news media, which covers the horse race and the strategy of every campaign as if there’s no such thing as governing that comes after the election.

But ultimately, it’s the candidates who choose to follow these strategies, using these words to get elected knowing full well that they don’t mean what they’re saying.

This country is in big trouble. The national debt, now at $16 trillion, is more than our entire gross domestic product. Our unfunded entitlement obligations run into the hundreds of trillions. We have 15 percent of the population on food stamps. We have 15 percent of the population either unemployed or underemployed. And the federal government is spending a quarter of our GDP every year in a futile attempt to somehow fix all this. It is not working.

Under these circumstances, it is absolutely mandatory that the nation turn to leaders who are serious about solutions, serious about honest data and willing to give it to us straight about the nation’s situation. It is still possible to fix this mess, but it can’t be done by people who are unserious, dishonest and willing to say absolutely anything to remain in power.

In the business world, you need to understand facts, test your ideas and be honest about when solutions to problems are not working. Otherwise you will never make the necessary adjustments. People who do this are respected, because they are the ones who ultimately get results. Those who are out of ideas, and offer nothing more than the same ideas that have already failed, are fired. Sometimes, if they have integrity, they recognize that they are not the right people for the job and they step aside to make room for more competent leadership.

That’s why business leaders solve problems but the political class never does. And it’s ultimately the responsibility of the voters not to put up with this nonsense. If our only response to the very real problems facing this nation is a war of words, people need to understand that is a war that no one wins.

We still need ya, Herman.  Welcome to the Bean Counters club.  And keep reminding us it’s time to grow up.

Tom Balek – Rockin’ On the Right Side

Come back when you grow up, girl
You’re still livin’ in a paper-doll world
Livin’ ain’t easy, lovin’s twice as tough
So come back, baby, when you grow up

Come Back When You Grow Up – Bobby Vee

How’s This For A Plan? STOP!

Posted on by Standard Reply

I’m tired of hearing Democrats insisting that the Republicans and conservatives “have no plan”.

The liberal solution to every issue, question, and challenge is a new government “program” that will spend more money and will live forever, even after it fails or is obsolete.  Education is failing?  We must not be spending enough.  Our GDP is not growing?  More government spending.  Our favorite socially-engineered industry (green energy) can’t compete in the real world?  Give them more public money.

So when a Republican does not propose a new “program” featuring more government spending (and debt), that is the equivalent of “doing nothing” or “having no plan”.

Hogwash. Here’s a plan for you.

We must immediately STOP the ridiculous, wasteful government programs already in place that accomplish nothing.  The liberals’ insistence that government spending spurs the economy is deceitful – every dollar government gives to one person or company was taken from another person or company, and a big slice is missing by the time it gets to the receiver due to waste, corruption, and inefficiency.  Government spending, while sometimes necessary, is a proven drag on the economy.  Raising taxes makes it worse, and printing and/or borrowing money to spur the economy just delays the pain.

The quid pro quo, pay-to-play, corrupt paybacks to unions, corporate donors, cronies, and special interest groups must be STOPPED now.

Let’s immediately STOP the attacks and roadblocks on our energy industry by the Obama administration via the EPA and other agencies and aligned special-interest groups.   We have the resources and the technology to become the energy supplier to the world, and could do so quickly.  What do they not like about more jobs, a positive balance of trade, and elimination of the dependence on hostile foreign suppliers?

We can and must immediately STOP the flow of illegal aliens across our borders, most of whom end up collecting welfare.  This isn’t even a choice, as our laws and Constitution require it.

We must STOP throwing good money after bad, doing things the same way out of habit.  We have to STOP politicizing and polarizing every issue and shouting at each other across the ideological divide without even listening for kernels of wisdom that might be on the other side.

And because the stakes are so high, and our fiscal crisis is so urgent, we must focus on economics and STOP wasting time on all the distractions and bogus issues – the class warfare, the make-believe “war on women”, the race-baiting.  Unless we straighten out our fiscal mess, nothing else really matters.

One of the corny, childish jokes from the old Hee Haw television program (yes, you ARE old enough to remember) featured Archie Campbell as the country doctor.  A different patient every week would complain,  “Doc, it hurts when I do this.”  The wise doctor would always give him a whack and yell, “Then DON’T DO THAT!”  Not exactly rocket science, is it?

There are a lot more specifics to the plan of Republicans and conservatives.  But the best parts of their plan include the word STOP!

Tom Balek – Rockin’ On the Right Side

It’s time we stop,
Hey, what’s that sound
Everybody look what’s goin’ down

For What It’s Worth – Buffalo Springfield

Juneau: Montana Kids Are Abused

Posted on by Standard 6

Montana Children Waiting To Be Fed By Their Teachers

On behalf of the state of Montana, I apologize to America.  Our state superintendent of schools, Denise Juneau, spoke to the DNC and the entire nation yesterday, and I am embarrassed to have everyone see how low our once-great state has sunk.

Juneau revealed to the world that “Sometimes school is the only place where our kids can get a hot meal and a warm hug”.  She admitted that Montana parents do not care enough about their children to even feed them, or show affection.

She confessed that without President Obama, our kids have no chance for success.  But if Obama is re-elected, the opportunities are limitless – our children, she said, can emerge “from a home with a struggling single mom to the White House”.

Montana parents offer no future to our kids, especially single moms and our Native American families.  “Teachers are the only ones who tell kids they can go from the Indian reservation to the Ivy League,” she said.   I’m sorry you have to see how horrible our Montana parents are, based on the damning report by Denise Juneau.  So bad that teachers have to raise our kids for us, and even they can’t succeed unless Barack Obama is re-elected.

Juneau’s opponent for the office of superintendent of Montana schools, Sandy Welch, says if we can stop the Obama administration, senators Baucus and Tester, the EPA, and the radical environmental groups from blocking the development of our abundant energy resources, our economy will improve dramatically, along with family incomes, the tax base, and funds for education.

But Denise Juneau, in her speech, pointed out that it’s better to beg for scraps from a federal government sinking in debt, and rely on more hope and more change from a failed President rather than support Montana parents and local school boards and administrators, even if it holds down teacher salaries.

America, I’m sorry for what has happened to our Montana kids.

Tom Balek – Rockin’ On the Right Side

Hungry for those good things, baby
Hungry through and through
I’m hungry for that sweet life, baby
With a real fine girl like you

Hungry – Paul Revere and the Raiders

Write a check to your school for $88,000?!

Posted on by Standard 6

In my neck of the Montana woods, the annual cost to educate a K-12 student is over $11,000, which is about the state average.  Some nearby rural school districts spend $15,000 per student and one spends over $22,000 per kid per year.  (Data is available at the ‘Transparency in MT Schools’ website – thanks to the Montana Policy Institute).  This does not include the additional costs of government offices and personnel related to education.

Most people say we should spend more on education.  They aren’t specific about how much would be enough – $25,000 per student?  $50,000? $100,000?

Forgive my “old Bean Counter” instincts, but hearing these numbers makes me think:  If I live in this small Montana town where educating a student costs $22,000 per year, and I have four kids, do I have to write a check for $88,000 every August?

Now, I’m not going to tell any community or school board that they can’t spend that much, or more, if they are spending their own money.  The problem is, they aren’t.

For reference, Montana’s 2008 per capita income was under $35,000.  Most parents have no idea how much their schools spend, because they don’t write a check to the district — school funds come from somewhere else.

The costs are hidden.  Just like GRANTS.  Just like EMPLOYER PAID HEALTH INSURANCE and MEDICAID.  Just like pretty much ALL GOVERNMENT SPENDING.

It’s so easy to spend somebody else’s money.  The trouble is, as Margaret Thatcher famously said, “You eventually run out of other people’s money.”  She’s right.  We are out, and are now having to borrow and print the money we spend.

I’m not an anarchist – I know that there are important things that are better done collectively than individually.  And I’m not picking on Montana, our school spending pretty much mirrors the national average and test results are above average.  Much of the cost is mandated.

But I am a realist when it comes to budgets, and a believer in the miracle of the free market.  Gang, I’m sorry, we can’t keep spending more and more on education in this country, especially when our kids are not getting our money’s worth.

Many people just can’t get used to the idea of school vouchers, or school choice.  But look at it this way.  Let’s say you have three school kids.  Would you be ready and willing to write a check for $33,000 for the school year?  If you were able to write that check, would you be more demanding about what you are getting for your investment?

Now turn that scenario around.  Most people could not, or would not write that check.  So if instead you received a check from the government for $33,000, how would you spend it?

Would you spend it on the best education for your child that your money could buy?  For $33,000, would you perhaps stay at home and educate your own children?  Would you pay college tuition for your high-functioning senior instead of high school?

If one small-town school is your only choice, obviously that’s where your voucher goes.  You may choose to supplement it with your own money or contributions until it meets your standards.

Alternatives quickly spring up in the free market to supply any consumer demand.  Education is no different – why wouldn’t I buy the education product that is best for my family and student (quality, safety, value)?

Give me a million dollars and a hundred kids, and I’d sure like to give it a shot.  Bet I could hire some damn good teachers, and every graduate would be ready for financial independence and a productive career, or higher education.  There would be plenty of funds to transport, feed, and educate students at a level that is unattainable by the current system, along with a profit.

I recently heard a career public school educator remark, “the best math comprehension model I have ever seen is the one in place at Sylvan Learning Center.”

This is a deep discussion, with many questions (i.e. special education, extracurriculars, social issues, welfare kids), and this post is already too long.  But there are as many answers and ideas as there are questions – the free market has a way of finding solutions to consumer wants and needs.

I just want every parent to give some serious thought to the possibilities and potential of school choice, rather than dismiss it out-of-hand.  It’s time we take the chance.

Tom Balek – Rockin’ On the Right Side

Gonna do my very best and it ain’t no lie
If you put me to the test, if you let me try
Take a chance on me
(That’s all I ask of you honey)
Take a chance on me

Take A Chance On Me – ABBA

Isn’t It Ironic?

Posted on by Standard 2

Today’s little list of ironies:

  • Union leaders claim to represent the best interests of their workers – which would be “get us more jobs”.  So why do the unions oppose energy development and infrastructure in our country that would spur the economy, enhance our security by providing energy independence, rebuild our manufacturing base, and create thousands (maybe millions) of jobs?
  • Conservatives love the NRA (National Rifle Association) because of its defense of the second amendment.  But the NRA helped Harry Reid win a very narrow re-election over a true conservative opponent.  Reid, the Democrat Senate leader, is the single biggest obstacle to everything the conservatives believe in and has caused untold damage to the nation in recent years!
  • President Obama promised the most transparent administration in history.  Yet his own social security number does not pass E-Verify (which US businesses are required by federal regulation to file for every new hire), his college records are sealed, and he won’t instruct his Dept. of Justice to release records about the Fast and Furious scandal after years of direct demands by Congressional investigators!

Isn’t it ironic?  Or, as the social media set says: “WTF?”

Tom Balek – Rockin’ On the Right Side

Enjoy a classic tune by one of America’s
finest songwriters, Alanis Morissette

And isn’t it ironic
Don’t you think?
A little too ironic
Yeah, I really do think

Ironic – Alanis Morissette

Montanans Don’t Care About Their Kids

Posted on by Standard 3

What do you want your child to be able to do when he or she becomes an adult?

Let me guess:  How about “make a good living, have a nice home, raise a family?”  Perhaps “have a comfortable lifestyle without being burdened with debt and insecurity?”  Maybe “save some money for a comfortable retirement?”

You may have other, more fuzzy aspirations for your child, such as “happiness” or “love” or “fulfillment”.  But I’ll bet the items I mentioned above are at the top of your list.

Then why have you and I and every Montana parent not DEMANDED that our schools teach our children about money?

Except those who are on welfare, or are retired, or are so disabled that they are excluded from work, every American wakes up each morning and sets out to improve his or her family’s standard of living.  It’s the essence of life.  We have wants and needs, and we strive to fulfill them within the economic system in which we live.  One would think that our education system would be geared toward that top priority of life, and our children would leave school with a fundamental working knowledge of the role of money, finance, and economics in our free-market democratic republic.

But no.  Our state requires high school students to learn mathematics, language skills, social studies, science, health, art, world languages, and vocational/technical studies.  An extensive array of fine arts is recommended.  But my search of the Montana Office of Public Instruction website did not find the word “economics” mentioned EVEN ONCE.

The OPI website includes numerous articles trumpeting the importance of Indian studies, but none about how to make our Native American students financially successful and independent.

Can you name one human activity that does not involve money?

Can you guess how many high school athletes become professional athletes?  Basketball: .03% .   Football: .09%.   We know how much attention and money is paid to those pursuits.

But how many high school students will need to earn a paycheck or make a profit, file a tax return, handle financial transactions with confidence, understand how their government handles their money, buy insurance, manage a family budget, make intelligent borrowing, saving, and investing decisions?  100%.

(By the way, most professional athletes are bankrupt within a few years of the end of their playing careers, because they weren’t taught economics in school either.)

Some Montana schools offer consumer economics classes or a make a minimal attempt at teaching economics within other courses.  But I’ll bet the participation rate is miniscule where offered.

The biggest failure in our education system is the refusal to provide our children the financial literacy they need to thrive and survive.  As we continue to matriculate generation after generation of walking economic victims, our nation flounders in debt, our dependency on government explodes, and we elect whichever pandering politician promises to give us the most free “stuff”.

One can only conclude that Montana parents either haven’t seriously thought about the importance of economics, or they think their kids are destined to become professional athletes.  Either way, the kids are screwed.

Tom Balek – Rockin’ On the Right Side

We don’t need no education
We don’t need no thought control
No dark sarcasm in the classroom
Teachers leave those kids alone

Another Brick In the Wall – Pink Floyd

Romney: Why Are We the Fed’s BITCH?

Posted on by Standard 1

Those of you who have followed Rockin’ On the Right Side (thank you!) through its infancy know that my main concern is our nation’s fiscal viability.   No, make that fiscal survival.

And you know that Mitt Romney was not my favorite presidential candidate.  In fact, I was solidly in the Cain camp in the early going, as he led the charge against corruption and the crazy growth in our bloated federal government.   9-9-9!   Sadly, Cain was taken out by a dirty Chicago-style maneuver, one of many ugly tricks I have watched in horror in my virgin year of full-contact politics.

So when Romney filtered through as the last Republican standing, I, like many of my brethren, fell in line, knowing that anybody — Elmer Fudd, Curly of the Three Stooges, Rodney Dangerfield – ANYBODY would handle our national piggy-bank better than Barack Obama.

Last time around, we conservatives held our noses and voted for John McCain.  I hoped that Romney would not be as oderiferous.

And then, last week, Romney picked Ryan.  That told me he is serious about tackling THE BIG PROBLEM: the debt, deficit, and economy.

And now, Romney says “Heck yes, let’s audit the Fed.”  WOO HOO!  He really does get it!

I know, my man Cain didn’t think a Fed audit was necessary.  And Ron Paul – bless his heart, he is so right on so many issues – was just not viable as a world leader.  But he was SO right about auditing the Fed.  The damage done by the Federal Reserve from 2008 through today will be required reading for economics and history students for generations to come.

Let’s not stop at an audit.  Let’s figure out who these guys are, who they work for, who profits from their actions, what possible benefit can come from holding interest rates to zero, how watering down the value of the US dollar by printing fiat currency is a good thing, and . . . why the entire free world is their BITCH!

Mitt Romney – Paul Ryan.  There may be hope for this nation after all.

Tom Balek – Rockin’ On the Right Side

Sometimes you just gotta ROCK!

Bitch – the Rolling Stones